Which of the Following Most Accurately Defines Professional Skepticism as It

question 56

Multiple Choice

Which of the following most accurately defines professional skepticism as it is used in auditing standards?

• A) It either assumes management is honest or slightly dishonest, but neither all the time.
• B) It neither assumes that management is dishonest nor assumes unquestioned honesty.
• C) It assumes management is honest most of the time.
• D) It assumes that management is dishonest in only rare instances.

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Definitions:

Negotiable Instruments

Negotiable instruments are financial documents that promise payment to the holder and are freely transferable, such as checks, promissory notes, and bills of exchange.

Commercial Paper

An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories, and meeting short-term liabilities.

Paper Documents

Physical documents that contain written or printed information, as opposed to digital or electronic formats.

Lost

Refers to the status of an item or entity that cannot be located or has gone missing.